I have a query regarding FEMA overseas investment. My Company a private Limited concern in India wants to set up a subsidiary in USA with 95% shareholding of the indian company and 5% shareholding of the indian company's other WOS foreign subsidiary in hongkong. The professional fees charged by the lawyers of USA for company formation is in US dollars which the Indian Company wants to remit. My query is whether the remittance to USA will require approval of RBI. Do we have to file Form ODI for paying professional fees to lawyers? Further how will this transaction be treated in books of Indian Company and in the newly formed USA subsidiary?
17 February 2012
In form A2 I have not come across option relating to pre - incorporation expenses. There is an option for legal fees. Can we remit money showing for legal fees paid and then include in balance sheet of foreign incorporated as pre incorporation expense incurred.
CAclubindia
